factual

Does the non-compete agreement for Brain Balance extend to diverting business from other Brain Balance franchisees or affiliates?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

3.04. FRANCHISEE acknowledges that other franchisees and/or affiliates of COMPANY who conduct businesses similar or identical to the Franchised Business under the Marks may market to clients located inside of the Territory or advertise inside of the Territory.

Source: Item 22 — CONTRACTS (FDD pages 70–72)

What This Means (2025 FDD)

According to the 2025 Brain Balance Franchise Disclosure Document, franchisees acknowledge that other franchisees and/or affiliates of Brain Balance who conduct businesses similar or identical to the franchisee's business under the Brain Balance marks may market to clients located inside of the franchisee's territory or advertise inside of the territory. This indicates that while Brain Balance grants an exclusive territory, other franchisees and affiliates are not restricted from marketing or advertising within that territory.

This policy could lead to increased competition within a franchisee's territory, as other Brain Balance locations can actively seek clients in the same area. While franchisees are granted a territory, this clause means that the protection is not absolute, and they may need to compete with other Brain Balance centers for clients.

Prospective franchisees should consider the potential impact of this policy on their business. It would be prudent to inquire with Brain Balance about the locations of other franchisees and affiliates, their marketing strategies, and how Brain Balance supports franchisees in managing competition within their territories. Understanding these factors will be crucial in assessing the potential profitability and challenges of operating a Brain Balance franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.